Suchergebnisse

This study examines the effects of two major environmental jolts, the Airline Deregulation Act of 1978 and the 9/11/2001 terrorist attacks, on strategic change and performance in the U.S. air carrier industry. The sample includes the Major U.S. air carriers during two periods of time: deregulation (1974-1986) and 9/11/2001 (1997-2008). Data were collected from archival sources and analyzed using cross-sectional time series regressions with fixed effects. The results show that following both environmental jolts, the initial response of the airlines was emphasis on cost control. However, over the long run, there was a deceleration of the emphasis on cost control. Further, following deregulation, the long run response involved the acceleration of differentiation change. We also found a significant relationship between strategic change and firm performance. The results contribute towards a reconciliation of the conflicting predictions of the repetitive momentum hypothesis and the deceleration hypothesis.

ABSTRACTManuscript Type:ReviewResearch Question/Issue:Convergence in corporate governance across countries has been a subject of interest and controversy in a variety of disciplines. We attempt to address a number of related research questions: (1) what constitutes convergence? (2) what are the drivers that propel corporations in different nations towards convergence? (3) what are the major impediments that stand in the way of convergence? (4) what empirical evidence do we have to suggest that we are moving towards or away from convergence? and (5) what would be some productive avenues for further research on this topic?Research Findings/Results:Despite the vigorous intellectual position of the proponents of convergence, there is only limited evidence to indicate that such convergence is actually occurring. Even when there is ostensible convergence, much of it is convergence in form rather than substance, and governance convergence is not a context‐free phenomenon.Theoretical Implications:Our review of the past literature suggests that increasing integration of product and capital markets is leading to changes in corporate governance around the world, but there is only limited evidence that such changes constitute convergence. Governance changes seem to be primarily attributable to the quest for greater efficiency in governance and enhanced legitimacy in capital markets. However, local forces such as institutional embeddedness and politics can hinder governance changes or create "hybrid" practices.Practical Implications:The ideal corporate governance may be institution‐ and firm‐specific and an imposition of new practices or standards may not lead to intended policy or performance outcomes.

Research Question/Issue: Convergence in corporate governance across countries has been a subject of interest and controversy in a variety of disciplines. We attempt to address a number of related research questions: (1) what constitutes convergence? (2) what are the drivers that propel corporations in different nations towards convergence? (3) what are the major impediments that stand in the way of convergence? (4) what empirical evidence do we have to suggest that we are moving towards or away from convergence? and (5) what would be some productive avenues for further research on this topic? Research Findings/Results: Despite the vigorous intellectual position of the proponents of convergence, there is only limited evidence to indicate that such convergence is actually occurring. Even when there is ostensible convergence, much of it is convergence in form rather than substance, and governance convergence is not a context-free phenomenon. Theoretical Implications: Our review of the past literature suggests that increasing integration of product and capital markets is leading to changes in corporate governance around the world, but there is only limited evidence that such changes constitute convergence. Governance changes seem to be primarily attributable to the quest for greater efficiency in governance and enhanced legitimacy in capital markets. However, local forces such as institutional embeddedness and politics can hinder governance changes or create "hybrid" practices. Practical Implications: The ideal corporate governance may be institution- and firm-specific and an imposition of new practices or standards may not lead to intended policy or performance outcomes.

The issue of whether stock prices and exchange rates are
related or not has received considerable attention after the East Asian
crisis. During the crisis the countries affected saw turmoil in both
currency and stock markets. If stock prices and exchange rates are
related and the causation runs from exchange rates to stock prices, then
the crisis in the stock markets can be prevented by controlling the
exchange rates. Moreover, developing countries can exploit such a link
to attract/stimulate foreign portfolio investment in their own
countries. Similarly, if the causation runs from stock prices to
exchange rates then authorities can focus on domestic economic policies
to stabilise the stock market. If the two markets/prices are related
then investors can use this information to predict the behaviour of one
market using the information on other market.1 Most of the empirical
literature that has examined the stock prices-exchange rate relationship
has focused on examining this relationship for the developed countries
with very little attention on the developing countries. The results of
these studies are, however, inconclusive. Some studies have found a
significant positive relationship between stock prices and exchange
rates [for instance Smith (1992); Solnik (1987) and Aggarwal (1981)]
while others have reported a significant negative relationship between
the two [e.g., Soenen and Hennigar (1998)]. On the other hand, there are
some studies that have found very weak or no association between stock
prices and exchange rates [for instance, Franck and Young (1972); Bartov
and Bodnor (1994)].

Networks, and their resulting social capital, can be key determinants of successful business start-up for immigrant entrepreneurs. Historically, immigrants have settled in communities characterized by networks that consist of strong ties. Network theory suggests that in addition to strong ties, success also requires the development of weak ties. In this paper, we develop a model of the relationships between strong and weak ties, and the likelihood of a business start-up and its subsequent growth. We also specifically consider the moderating effect of the entrepreneur's human capital in these relationships. Based on this model, we derive a number of theoretical propositions.

AbstractWe examine whether the differences in the legal origins of countries (Common Law versus Civil Law) can explain the variations in the price efficiencies of the stock markets of different countries. Based on multifractal detrended fluctuation analysis of the daily stock indices of 34 countries over 21 years, we find that the stock price indices in Common Law origin countries show greater price efficiency than the stock price indices in Civil Law countries. These results provide additional evidence that the legal origins of countries affect their economic activities and outcomes.

When change occurs unpredictably and the time to react is compressed, organizations have to quickly obtain resources they do not readily have. In those situations, organizations are likely to reach out to their long-term networks (LTNs) or to activate dormant networks (DNs). But, what happens when the organization's activities frequently change locations or when the resources needed fluctuate frequently? We argue that under such conditions, the organization can benefit by forming temporary networks (TNs) and renewing, reconfiguring, creating, aligning, and directing the TN's resources. TNs are those that are formed quickly and last a short period of time. We label the dynamic capability to form TNs and manage TNs' resources as temporary network development capability (TNDC) and suggest that it is a special kind of relational capability. We argue that experience with weak-ties networks, swift trust, unpredictable change experience, skill specificity and reputation help in the development of TNDC.

This paper investigates the extent to which country risk ratings influence the inflow of foreign direct investment (FDI). Using International Monetary Fund (IMF) data from over 100 countries and Euromoney's country risk ratings over a ten‐year period, this study finds that country risk ratings have a significant influence on FDI. This effect is stronger for US FDI. We also analyze the relative importance of the individual components of the country risk index.